Ethereum price breached the important $18K level for the first time in two weeks on Wednesday as markets react to crypto support from financial institutions. At the time of writing, Ethereum was trading 1.22% higher at $1,813.88. Its total market cap has jumped by nearly 5% over the last day, while its total volume traded nudged 53% higher.

Catalysts Behind ETH’s Recovery

Ethereum price has staged a strong recovery in the past few days, adding more than 4% in the past week and 51.51% in the year to date. ETH’s recent rally is in tandem with the market-wide recovery in the crypto sector. Data by Coinmarketcap shows that the global crypto market cap climbed by 6% over the last 24 hours to $1.14 trillion, while the total crypto market volume increased by 67.70% over the same period.

Crypto market sentiment has been high since late last week after BlackRock, the world’s largest asset manager, filed for what would be the first-ever spot bitcoin ETF in the U.S. BlackRock’s application came in a week after the US Securities and Exchange Commission (SEC) filed a lawsuit against crypto exchange heavyweights, Binance and Coinbase.

The Wall Street regulator hit the crypto exchanges with a slew of allegations, including selling unregistered securities. Markets have been speculating about BlackRock’s timing, particularly with Coinbase as its crypto custody partner.

Additionally, a new crypto exchange backed by financial giants, Charles Schwab, Citadel Securities, and Fidelity Digital Assets signaled its support for cryptocurrencies after announcing that it has been trading Bitcoin and Ether for several weeks.

With heavyweights like BlackRock and Fidelity showcasing their crypto commitments to the public, investors have been quite optimistic about the future of the crypto sector. The Bitcoin price has breached the $28,000 level for the first time since early May, with most altcoins following closely. As such, investors seem to remain optimistic, pumping liquidity into the crypto market.

Ethereum Price Analysis

The daily chart shows that the Ethereum price has been on an upward trajectory for the past few days, moving above the major bullish support level of $18,000. The altcoin has managed to move above the 50-day and 200-day exponential moving averages, while its Relative Strength Index (RSI) moved above the signal line into the neutral zone. Its Moving Average Convergence Divergence Indicator has also moved into the bullish zone. However, the digital asset has failed to move above the 50-day and 100-day simple moving averages.

Therefore, there is a likelihood that the Ethereum price will continue moving upward as buyers target the next important resistance level of $1,920. A move past the crucial resistance will give bulls enough momentum to push the price higher to $2,000. On the other hand, a move below the crucial support of $1,769.05 will invalidate the bullish thesis.

ETH Price Chart